Equipment Financing

Find that right button to optimize your financing

Lakefront Capital offers equipment financing for companies that are looking to expand their capabilities and IT infrastructure. Using a cash flow analysis of your business, and assessing available tax benefits, we will put together a financing strategy that is most effective for your business.

Benefits of Leasing

Equipment leasing is one of the most utilized forms of financing for corporations -- both domestic and international. In fact, over $200 billion in equipment value is leased every year and leasing plays a major role in virtually every industry of operation. Initially, lease financing was of short duration to cover very short term needs. Today, leasing is a continuous and entrenched means of financing the equipment needs of companies worldwide. Leasing’s popularity stems from several key advantages that leasing provides over other forms of financing.

Financial Flexibility

Leasing does not necessarily encroach upon existing credit lines and thus adds a layer of potentially off-balance sheet financing (in the case of operating leases) that does not necessarily increase the leverage ratios traditionally found in covenants associated with public debt and bank financing. But leasing is not just about financial engineering as many companies, as a business matter, would rather invest in assets with the potential to appreciate and lease those that tend to depreciate.

Tax Advantages

As an operating lease is not a purchase, lessees are able to deduct the lease payments on their Income Statements thereby lowering taxable income. Also, lessors can pass along the tax benefits of ownership to the lessee through a lower financing rate.

Lower financing Rates

Since, with an operating lease, the lessee is only financing at most 9O% of the equipment cost and since the lessee is giving up the depreciation to the funding sources, a lower financing rate is usually the result.

 

For more information on how Lakefront Capital can help your equipment financing programs, please visit our contact us page to request an appointment.